Market chaos puts upward pressure on UK commercial property yields

With the exception of some industrial assets, commercial property in the UK is not directly impacted by the higher tariffs announced by President Trump and property equities have performed relatively well. Nevertheless, a 5% fall in property equity prices since the tariffs were announced implies a higher risk of a fall in commercial property values, particularly for industrial. If the tariffs are not reversed, investment looks set to remain subdued for longer than we had originally expected.